A Canadian Producer’s View of the BSE Situation

by Gordon Church, Balzac, Alberta

May 20th, 2003, was a disastrous day for the Canadian livestock industry and potentially for my cattle operation. After 40 years in the business, I have never experienced as bad a day.

My daughter, calling from Kansas City early that morning, asked about reports of a BSE cow in northern Alberta.  My initial reaction was complete disbelief and shock. How could this happen with the rigid health regulations Canada adopted? My worst fear had been realized.

I’ve managed through low prices, drought, devastating hailstorms and early frosts and always have found a way to plan around these setbacks and move on. However, this situation is completely out of my hands, and for an independent producer, this is extremely frustrating and worrisome.

Four decades have been spent building a cowherd that generates a product the market wants using all the tools at my disposal, including ultrasound, EPDs and computer programs. Yet, it all seems for nothing.

The need for answers and an early resolution are constantly in my thoughts.  Early on, I hoped this was a case of an imported cow from Great Britain. Slowly, the realization came that this was a long shot.

In the early stages of the crisis, I monitored radio, TV and print media, trying in vain to find reliable information. There were many experts ready to comment but there were few answers. Meanwhile, the media became obsessed with BSE, primarily from the consumer perspective, and the reports were often based on unreliable data.

The immediate closure of the American border was not unexpected. Canada would have done the same thing. However, it seems incredible that one cow can devastate an industry.

During the past month, I have watched the market for fats fall from $1.05 ($.78 U.S.) to 85 cents ($.63 U.S.) to 74 cents ($.55 U.S.) to 50 cents ($.37 U.S.), and today down to 35 cents ($.26 U.S.) … if you can find a buyer at all. In light of this, do I keep my fats on full feed or try to coast them for as long as possible on a lighter ration hoping for a solution?

The cull cow market also has collapsed; I sold 16 head on July 3rd for 20 cents a pound ($.14 U.S.), reinforcing the need to cut operating costs.

The impact of this situation is massive. For one thing, how will agricultural lenders react?  You wonder and worry about other livestock operations and related industries. Truckers were the first to be directly affected, then feedlot employees; now, there is uncertainty and distress for auction markets and their employees, rendering plants and packing plant workers, veterinarians, feed mills and feed stores, farm supply outlets and the small towns and cities that rely on these businesses — all reeling under the devastating short- and long-term effects.

Now, I question whether our Alberta industry will recover and regain its international position. The current situation offers little if any alternatives to circumvent the severe economic repercussions and the unanswered questions linger. As an enthusiastic proponent for, and early user of the National Livestock Identification Program, I ask myself  “Should we have started earlier?” To this question I do have the answer.

C. Gordon Church has been the owner of a purebred horned Hereford, commercial cow-calf and feedlot operation at Balzac, Alberta, (immediately north of Calgary) since 1965 that is located on property purchased by his paternal grandparents in 1901.  Over the years he has served on the first panel of delegates to the Alberta Cattle Commission; as a Board member of  the first appointed Board of Governors of Olds College. Gordon has also provided extensive leadership in the Beef 4-H Program, the Alberta Hereford Association and the Calgary Central Cattle Feeders Association.

Gordon and Rosemary have three adult children, all of whom continue to carry on an active interest in their parent’s livestock operation.  Gordon holds a BSc Agriculture from the University of Alberta.